Policy Announcements under Viksit Bharat FY 2025-26

Finance Minister Nirmala Sitharaman announced the Union Budget 2025-26 in Parliament today. Union Budget highlights that Agriculture, MSME, Investment, and Exports are the key drivers towards Viksit Bharat, while fostering inclusivity and human resource development.

Agriculture & Rural Economy

Prime Minister Dhan-Dhaanya Krishi Yojana: Development of Agri Districts Programme to cover 100 districts to support 1.7 crore farmers.

Enhanced Credit through KCC: Short-term loans for 7.7 crore farmers, fishermen, and dairy farmers with enhanced loan amount of Rs 5 lakh.

To develop India Post as a catalyst for the rural economy for enhanced reach for financial inclusion.

National Mission on High Yielding Seeds: Targeted development and propagation of seeds with high yield, pest resistance, and climate resilience.

Aatmanirbharta in Pulses

Launch a 6-year Mission with special focus on Tur, Urad and Masoor with focus on  

• Development and commercial availability of climate resilient seeds 

• Enhancing protein content 

• Increasing productivity 

• Improving post-harvest storage and management, assuring remunerative prices to the farmer

MSMEs

Credit Cards for Micro Enterprises: Customised Credit Cards with a Rs 5 lakh limit for micro enterprises. Ten lakh such cards to be issued in the first year.

Focus Product Scheme for Footwear & Leather Sectors: Generate employment for 22 lakh persons, a turnover of Rs 4 lakh crore, and exports of over Rs 1.1 lakh crore.

Toy Sector: Develop toy sector, focussed clusters, skills, and a manufacturing ecosystem that to manufacture high-quality, unique, innovative, and sustainable toys under the 'Made in India' brand.

Support for Food Processing: The establishment of a National Institute of Food Technology in Bihar, enhanced income for the farmers and skilling, entrepreneurship, and employment opportunities for the youth.

Revision in classification criteria for MSMEs: The investment and turnover limits for classification of all MSMEs enhanced to 2.5 and 2 times, respectively.

Launch of a new scheme for 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs to provide term loans up to Rs. 2 crore during the next 5 years.

Investing in People, Economy and Innovation

Expansion of Capacity in IITs for building advanced technical skills and innovation.

Atal Tinkering Labs: 50 Thousand Labs to be set up in government schools in next 5 years.

Centre of Excellence in Artificial Intelligence for education with a total outlay of Rs 500 crore.

PM SVANidhi: To be revamped with enhanced loans from banks, UPI-linked credit cards, and capacity-building support.

Welfare of Online Platform Workers: Registration on the e-Shram portal & healthcare under PM Jan Arogya Yojana.

Broadband connectivity is to be provided to all government secondary schools and primary health centres in rural areas.

Welfare of Online Platform Workers: Registration on the e-Shram portal & healthcare under PM Jan Arogya Yojana.

Day Care Cancer Centres in all District Hospitals.

Support to States for Infrastructure: With an outlay of Rs 1.5 lakh crore, 50-year interest-free loans to states for capital expenditure and incentives for reforms.

Jal Jeevan Mission: To achieve 100% coverage, the mission extended till 2028 with an enhanced total outlay.

Power Sector Reforms: Incentivize distribution reforms and augmentation of intra-state transmission. Additional borrowing of 0.5 % of GSDP to states, contingent on these reforms.

Asset Monetization Plan 2025-30: Launched to reinvest capital of Rs 10 lakh crore in new projects.

Nuclear Energy Mission for Viksit Bharat: Amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up for active partnership with the private sector.

Future needs of Bihar Greenfield airports, financial support for the Western Koshi Canal ERM Projects.

SWAMIH Fund-2  Rs15,000 crore for faster completion of one lakh housing units through blended finance.

Maritime Development Fund with a corpus of Rs 25,000 crore for long-term financing with up to 49 % contribution by the government.

UDAN: Regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years.

R& D and Innovation Allocation of Rs 20,000 crore to implement private sector driven research, development and innovation projects.

Gyan Bharatam Mission: Conservation of India’s manuscript heritage covering more than 1 crore manuscripts. National Digital Repository of Indian knowledge systems for knowledge sharing to be set up.

Gene Bank for Crops Germplasm The 2nd Gene Bank with 10 lakh germplasm lines to be set up for future food and nutritional security.

PM Research Fellowship: To provide ten thousand fellowships for technological research in IITs and IISc.

National Geospatial Mission: To develop foundational geospatial infrastructure and data. Using PM Gati Shakti, facilitation of modernization of land records, urban planning, and design of infrastructure projects.

Exports Promotion

Export Promotion Mission: Facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets. 

BharatTradeNet: A digital public infrastructure, ‘BharatTradeNet’ (BTN) for international trade will be set-up as a unified platform for trade documentation and financing solutions. Support for integration with Global Supply Chains.

National Framework for GCC: As guidance to states for promoting Global Capability Centres in emerging tier 2 cities.

Warehousing facility for air cargo: To facilitate upgradation of infrastructure and warehousing for air cargo including high-value perishable horticulture produce.

Financial Sector Reforms and Development

‘Grameen Credit Score’ framework to serve the credit needs of SHG members and people in rural areas.

NaBFID to set up a ‘Partial Credit Enhancement Facility’ for corporate bonds for infrastructure.

Revamped Central KYC registry to be rolled out in 2025.

Rationalisation of requirements and procedures for speedy approval of company mergers.

FDI limit for the insurance sector will be raised from 74 to 100 per cent.

Indirect Tax Proposals

Rationalisation of Customs Tariff Structure for Industrial Goods

Removal of 07 tariff rate. Not more than one cess or surcharge.

Make in India- Exemption to open cell for LED/LCD TV, looms for textiles, capital goods for lithium ion battery of mobile phones and EVs.

Exemption for 10 years on goods for ship building and ships for breaking, extension of time limit for export of railway goods imported for repairs.

Duty free inputs for handicraft and leather sectors.

Direct Tax Proposals

Personal Income Tax reforms with special focus on the middle class.

No Income Tax on average monthly income up to Rs 1 lakh, to boost middle class income and consumption.

Nil income tax up to Rs 12.75 lakh income per annum for salaried class in new tax regime.

Tax deduction limit for senior citizens doubled from Rs 50,000 to Rs 1 lakh.

The annual limit of Rs 2.40 lakh for TDS on rent increased to Rs 6 lakh.

Extension of time-limit to file updated returns, from the current limit of two years, to four years.

Reduced compliance for small charitable trusts/institutions by increasing their period of registration from 5 years to 10 years.

Tax payers to be allowed to claim the annual value of 02 self occupied properties without any conditions.